Leather, footwear exports may hit $5.5 billion as UK, EU trade pacts boost growth: CLE Chairman Juneja

India's leather, footwear and accessories exports are projected to grow by over 12 percent year-on-year to reach USD 5.5 billion in 2026-27, with further growth anticipated in the next fiscal due to the implementation of trade agreements with the UK and the EU, according to CLE Chairman Ramesh Kumar Juneja. In 2025-26, the exports were valued at USD 4.89 billion.

Juneja remarked that exports to the UK are expected to reach USD 1 billion within the next two and a half years, currently standing at USD 600-700 million annually. The India-UK Comprehensive Economic and Trade Agreement (CETA) took effect on July 15, 2026, while a similar trade pact with the European Union (EU) is set to be implemented next year.

Under these agreements, Indian leather goods and footwear will gain duty-free access to the British and EU markets. Juneja informed PTI that the United States and the EU account for approximately 75 percent of India's total leather exports. The sector currently employs 4.42 million people and is well-positioned to benefit from zero-duty market access from trade partners such as the UAE, Oman, Australia, the European Free Trade Association, the UK, the European Union, and New Zealand.

Juneja highlighted that the Council for Leather Exports is implementing several measures, including workshops and seminars for MSME exporters, to raise awareness about these Free Trade Agreements. Challenges faced by the sector, including the need for redressal to further boost production, exports, and job creation, were addressed by Juneja, who called for the resumption of the Integrated Development of Leather Sector (IDLS) scheme for MSMEs and the removal of the 10 percent import duty on finished leather.

The council is also aiming to attract foreign direct investment to stimulate domestic manufacturing in the country.